Despite a continuous four-day streak of net outflows from bitcoin spot exchange-traded funds (ETFs) totaling $93.85 million, bitcoin price has risen impressively to reclaim the 66,000 mark Dollars. According to data from Farside Investors, Grayscale ETF GBTC experienced a significant outflow yesterday, with a single-day net outflow of $358 million, culminating in a historic net outflow of $13.63 billion for GBTC alone.
In stark contrast, the BlackRock bitcoin Spot ETF (IBIT) yesterday witnessed a sizeable net inflow of $233 million, bringing IBIT's total net inflow to $13.32 billion. This is slightly below the average for BlackRock, which has received $271.9 million in inflows since its launch on January 11.
Other ETFs haven't fared as well in recent days. Fidelity's FBTC, the second-largest ETF, has so far achieved an average daily inflow of $141.5 million, but yesterday saw a disappointing inflow of $2.5 million.
The third largest, the Ark Invest bitcoin Spot ETF, has seen average inflows of $40.9 million to date, while yesterday's inflows were just $2.0 million. Bitwise's BITB, which is in fourth place, has accumulated an average of $30.7 million, with a modest inflow of $12 million yesterday.
Overall, all bitcoin spot ETFs, including GBTC, have seen an average of about $230 million in daily inflows since January 11.
bitcoin price stagnates: reason to worry?
Ki Young Ju, CEO of CryptoQuant provided information on the situation via X, stating: “bitcoin spot ETF net flows are slowing. Demand may pick up if btc price approaches critical support levels. The new whales, mainly ETF buyers, have an on-chain cost of $56k. “Corrections typically involve a maximum drawdown of around 30% in bull markets, with a maximum pain of $51,000.”
crypto Analyst WhalePanda highlighted the trend, noting: “ETF flows yesterday: Another negative day, it's the fourth day in a row (…) I'm honestly surprised at how big the GBTC outflows are. Another $358.8 million and that makes a total of $1.83 billion in just 4 days.” WhalePanda also addressed Genesis' role, suggesting that the company's “in-kind” sale of GBTC shares for btc could explain the large outflows without corresponding market dumps.
Thomas Driver, founder of Apollo, Offered a bullish outlook: “I know it's forbidden to post anything bullish about #bitcoin ETFs right now, but I'll do it anyway. The GBTC sale is temporary. Financial advisors and institutions have only just begun to buy. In the next 1 or 2 years, inflows of 100 billion dollars will arrive. Patience.”
Charles Edwards, founder of Capriole Investments, commented on the Grayscale situation, “Grayscale bitcoin ETF Holdings Fall Off a Cliff. 50% drop, or around $20 billion at current btc price. We should be days or weeks away from reducing rates to stop the bleeding. Blackrock Holdings Expected to Overtake Grayscale Ahead of Halving!
Although the last few days have been quite disappointing, it is worth noting that the outflows are (almost) exclusively coming from Grayscale's GBTC, while other investors hold on to their bitcoin investments. This means it's only a matter of time before Grayscale's outflows stop, and even small inflows from other ETFs have a big impact (without the outflows).
At the time of this publication, btc was trading at $66,203.
Featured image created with DALL·E, chart from TradingView.com
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